Forex Automated Trading - Trade with a Forex Professional 24 hours a day!
Finance → Stocks, Bond & Forex
- Author T.l. Berban
- Published September 2, 2009
- Word count 836
The foreign exchange, or Forex, market is one of the largest and most liquid financial markets in the world. Each day over 3 trillion dollars is exchanged and this volume is growing. As the individual investor finds the US stock markets less than ideal for consistent returns, interest in Forex will continue to rise. Also, it is considerably harder for a group to manipulate this market due to its size and liquidity.
The Forex market is where it's at for the individual investor. This is also evident when looking at key word searches in Google as searches on Forex related content is up around 50% from the previous year. How can the average investor earn consistent returns trading this market without losing it all? There are many methodologies out there but essentially there are three camps:
• Learn the ins and outs of trading Forex and become a trader.
• Purchase a trading "robot" that executes trades for you.
• Let someone else trade for you.
Becoming a Trader
Learning Forex is deceivingly simple as the number of symbols is tiny compared to the stock market. This method requires a lot of time and still there are no guarantees that consistent returns are achievable based on the trading system you use. At the very least there will be a considerable time gap between first learning about Forex and earning a return on investment.
Trading Robots
Trading robots or "expert advisors" are programs that use technical data to determine when, what and how much to trade. There is no trader present in this scenario, only the program that is making the decisions. The primary limitation of this software is the lack of fundamental data consideration and can be disastrous to your investment capital.
Professional Traders
Letting an experienced trader handle your trading for you is a safe and effective method for managing your capital, as long as the trader is reputable and has a proven track record of success. The best method to acquire this is through transparent trading history preferably from an unbiased third-party. There are three primary ways to let a trader control your account.
• Open a managed account with the trader.
• Open a brokerage account which allows you to auto-trade recommendations from a list of available traders and systems.
• Subscribe to trading signals from the trader to execute in your account.
Managed Accounts
Managed accounts work by opening an account and signing a power of attorney to allow the trader to execute trades in your account. The trader takes a certain percentage of your returns and usually charges a maintenance fee based on your account balance. While you do have access to your account it may be difficult to stop trading or remove funds based on your agreement with the trader. Also, most managed accounts require large deposits sometimes in excess of $100,000.
Auto Trading
Auto trading with a specific broker requires you to open a new account and set the trader as an introducing broker. This means that the trader gets a commission on every trade that is executed. The account is setup so that when a trader opens a trade it is executed in your account. The problem with this method is the trader is rewarded for the amount of trades they issue not the quality of those trades.
Trading Signals
When you subscribe to trading signals, usually with a fixed monthly fee, you get information on what trades to take in your own account. This is a great way to trade your account with a professional while maintaining control of your account. The only limitation is you must be available to enter the trade, preferably immediately, including while you're sleeping, working or otherwise indisposed. Entering a trade just minutes later can have a dramatic negative impact on your returns.
zipsignals - Automated Forex Trading Solution
zipsignals allows you to auto-trade your trader's recommendations in any of the hundreds of MetaTrader 4 (MT4) brokerage accounts including: Interbank FX, FXCM, FXDD, FXOpen, MIG Investments, and Alpari just to name a few. This allows you to trade Forex 24 hours a day without having to wake up or be near a computer.
Signals are executed in around 5 seconds, so you'll get the best fill possible. Better still, you keep 100% control of your account at all times. You can adjust your risk by setting how lot sizes are determined while still maintaining your trader's ability to weigh certain trades over others. You can even disable trades for an entire currency pair if desired. To reduce your risk further, add multiple subscriptions to diversify.
Go to zipsignals.com to research Forex signal providers and systems to determine the best ones for you based on your risk tolerances. All trades are reported, not just the winners. Historical draw-downs are calculated with open trades, the most transparent method, allowing you make an informed decision.
zipsignals provides you with the tools you need to succeed in the Forex market. Not all auto-trading solutions are created equal. Discover why you should be using zipsignals to maximize your returns.
zipsignals, ltd. - Research Forex signal providers and systems at www.zipsignals.com
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